If a price-discriminating monopolist sells the same product in two markets but charges a higher price in market X and a lower price in market Y, the pricing difference indicates that demand is:
A. More elastic in market X than market Y
B. Less elastic in market X than market Y
C. Less elastic in market Y than market X
D. The same in both market X and Y
B. Less elastic in market X than market Y
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Which of the following is true?
a. The objective of the firm is to maximize profits, by producing the amount that equates total revenue and total cost. b. The objective of the firm is to maximize profits, by producing the amount that equates average revenue and average total cost. c. The objective of the firm is to maximize profits, by producing the amount that equates average revenue and average variable cost. d. The objective of the firm is to maximize profits, by producing the amount that equates marginal revenue and marginal cost.
Miguel, Maria, and Marcos all would like a place to sit while waiting at their children's bus stop. The neighborhood association is considering installing several park benches at the bus stop. Miguel values the benches at $20, Maria at $30, and Marcos at $40 . The park benches and labor for installation cost $100 . If Miguel, Maria, and Marcos are the only residents who value the benches, what
should the neighborhood association do? a. Install the park benches because people like places to sit. b. Install the park benches because the benefits outweigh the costs. c. Do not install the park benches because the costs outweigh the benefits. d. Do not install the park benches to prevent the Tragedy of the Commons problem of overuse.
An economist would be more likely to argue against reducing inflation if she thought that
a. the central bank lacked credibility and if bonds were usually not indexed for inflation. b. the central bank lacked credibility and if bonds were usually indexed for inflation. c. the central bank had credibility and if bonds were usually not indexed for inflation. d. the central bank had credibility and if bonds were usually indexed for inflation.
Refer to Figure 18.1. With a tariff or quota, what is the equilibrium price of gloves in Duckland?
A. $8 B. $9 C. $10 D. $11